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TS Corporation manufactures has five segments. Last year, TS generated net operating income of $67,000. The following information was taken from last year's segmented income
TS Corporation manufactures has five segments. Last year, TS generated net operating income of $67,000. The following information was taken from last year's segmented income statement (brackets indicate a negative amount): West $26,000 $1,000 $10,000 East $ 45,000 $3,000 $10,000 Middle $35,000 $9,000 $10,000 North $50,000 $10,000 $10,000 Contribution margin Segment margin Allocated common fixed expenses Segment margin less allocated common fixed expenses South $162,000 $94,000 $10,000 $(9,000) $(7,000) $(1,000) $ 0 $84,000 TS expects similar operating results for the upcoming year. If TS wants to maximize its profitability in the upcoming year, which segment or segments should TS discontinue? Multiple Choice West, East, and Middle Multiple Choice West, East, and Middle West West and East no segments should discontinued
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